OpenAI has signed a lease for 88,500 square feet of office space in London, establishing its first permanent office outside the United States. The new location is expected to accommodate over 500 team members.
This move follows the company's announcement in February that London would become its largest research center outside the U.S. OpenAI currently employs about 200 people in the British capital.
The new office will be located in London's King's Cross district, an area that has become a hub for artificial intelligence companies. It will place OpenAI in close proximity to Google's DeepMind, Meta, Synthesia, and Wayve.
Leadership Perspective
Phoebe Thacker, head of OpenAI's London site, stated in a release: "The UK has a deep pool of AI talent and a strong track record in the industry. London is already a key center for our research and team, and this new office gives us the space to continue growing."
Infrastructure Challenges and Strategic Shifts
This expansion news comes shortly after OpenAI confirmed it was pausing its Stargate infrastructure project in the UK. The company cited energy costs and regulatory environment as reasons for delaying the plan.
According to people familiar with the matter, discussions between OpenAI and its project partner Nscale are still ongoing. The UK has some of the highest industrial energy prices in the world, and critics have pointed to high energy costs and delays in accessing the national grid as major obstacles to AI infrastructure development in the country.
UK's AI Momentum
Despite infrastructure challenges, the UK is accelerating its AI strategy. In early 2025, the UK launched its AI Opportunity Action Plan, and AI startup funding has already reached $6.7 billion this year, approaching last year's total of $8.2 billion.
Recent large funding rounds include:
- AI cloud company Nscale raising $2 billion in March
- Autonomous driving company Wayve raising $1.2 billion in February
- AI voice company ElevenLabs raising $500 million
Competition for AI Talent
Following a dispute between the Pentagon and OpenAI competitor Anthropic, UK officials are intensifying efforts to court the latter. According to a Financial Times report earlier this month, the UK has proposed that Anthropic expand its London office and consider a dual listing.